Expectations high on size of TS Budget expenditure
March, 14th 2016
With the Chief Minister K Chandrasekhar Rao’s firm directive that the Budget for 2016-17 should be realistic and to be tuned to the resources and requirements of the State, there is high anticipation about the size of the total expenditure.
Notwithstanding the speculation that the Telugu States are locked in one upmanship and if Andhra Pradesh despite battling bifurcation challenges could propose a total outlay of over Rs.1.35 lakh crore for 2016-17, Telangana being a rich State could easily peg its annual budget expenditure at least around Rs.1.4 lakh crore, Telangana is going to keep it realistic.
The total budget outlay for 2016-17 is likely to be around Rs.1.28 lakh crore to Rs.1.3 lakh crore going by the Chief Minister and the Finance Minister’s emphasis to keep it realistic.
Sources said “ Telangana is not bench marking against AP but against our State needs and requirements.” In the current year State total outlay is over Rs 1.15 lakh crore against that of AP's Rs. 1.13 plus lakh crore.
Going by the indications given by the Governor’s address and the thrust to be given to irrigation, health, education, energy, housing sectors as well as welfare, Telangana’s plan allocation for 2016-17 will be far higher than that of Rs.49,000 crore earmarked by Andhra State. That is Telangana will enhance its productive expenditure significantly to ensure its targeted growth rate of 15 per cent next year.
Even in current year Telangana’s plan allocation was Rs.52,000 crore double than what it was in the combined State. With the State’s flagship programmes- Mission Kakatiya for revival of tank system, Mission Bhagiratha to provide drinking water to each household, revamping public health sector institutions, residential schools, road connectivity and to upgrade infrastructure in line with expectation that Hyderabad will emerge global city, Telangana’s plan allocation could be huge, around Rs.70,000 to Rs.75,000 crore. The State’s revenues in the new financial year are expected to grow by 15 per cent and so also Central tax devolutions. The limit of market borrowings subject to FRBM norms will go up thanks to GSDP of 5.83 lakh crore. Besides, lot of thought and exercise went into pruning non plan expenditure by doing away with allocations to departments or wings that were part of united State legacy but not relevant to Telangana any more.